QUESTION 2 Case (smartcompany.com.au) A Perth-based car dealership has been slammed with a $65,000 loss after falling victim to an invoice scam, despite taking best efforts to verify the invoice as legitimate. The car dealership, which was unnamed by the department, had recently made a purchase from a supplier and received an invoice with the correct payment details. However, a week later the dealership received a different invoice via email from the scammers, who asked for the payment to be made to a different bank account. The dealership had a number of practices in place to verify the legitimacy of the new invoice, including requesting the invoice be supplied on the companys letterhead and seeking verbal confirmation from the scammers. The invoice was provided on the letterhead, but attempts to contact the scammers were unsuccessful. However, the $65,000 invoice was paid anyway. It took a week for the business to realise it had been scammed, only working it out after the real supplier rang and asked about the status of the payment.

Why do you think the preventive controls have failed at the dealership and were their adequate controls in place?